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To: Nuc 1.1

Due to various kinds of leverage in the economic system, a 5% drop in demand would probably get multiplied into a 20% drop in GDP and a total wipeout of the financial system along with a wipeout of the political system too.

The other way to do it is to have a mass withdrawal of cash from the banking system and/or the brokerage firms.

The sad part of the USA today is that due to leverage, a minor blip could crash the system, whereas in the old days, even a US Civil War could not.

There really is too big to fail and the fed implements QE to infinity because even a 1% drop in GDP could crash the system.


34 posted on 11/12/2012 7:54:37 AM PST by staytrue
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To: staytrue
The question then becomes; do we want to destroy the system and with it the west? When I am irritated, often of late, I think it is the best way to go. Upon reflection however it is not the best way to go. There is so much inherent good in our system. We should hasten its demise due to our own frustration and anger. Will it crash someday? Yes. Will it be sooner rather than later? Yep. Should we help it crash? Nope. This is one of those things that should be left alone.
41 posted on 11/12/2012 8:11:14 AM PST by Nuc 1.1 (Nuc 1 Liberals aren't Patriots. Remember 1789!)
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